Education, Culture and Entrepreneurship (original) (raw)
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Exploration of the Relationship between Cultural-Socio-Economic Determinants and Entrepreneurship
2016
There has been relatively little empirical analysis of the role played by culturalsocial-economic policies to promote entrepreneurship. Governments, for instance, conduct different entrepreneurship promotion policies. Financial assistance and easing of bureaucratic rules are provided to improve the entrepreneurship process in a country. Entrepreneurs benefit from education and skills, which are planned and subsidized by governments to provide an appropriate environment for business. So, it seems government policies on education promotion and human development, for instance, are important factors affecting entrepreneurship. Additionally, growth in total investment and savings expand economic capacity for further activities by entrepreneurs. The objective of this paper is to explore a causal relationship between entrepreneurship and its main determinants through regression analysis. We employ data on education, human development, property rights, the rule of law and some economic vari...
Culture, Entrepreneurship and Economic Development. An Empirical Approach
Entrepreneurship Research Journal, 2019
This paper investigates the influence of culture on the level of entrepreneurship and the possible moderating role of the level of economic development upon this relationship. For our purpose, an initial sample of 125 countries (43 high-income and 82 low-income countries) is used, over the 2006–2016 time period. At first, we use a panel analysis of the reduced sample which is furthermore completed by a hierarchical regression analysis. Our main results provide clear evidence that culture represents an important predictor of the level of entrepreneurship. Among the dimensions of culture, uncertainty avoidance and indulgence versus restraint are found to have the highest influence upon the level of entrepreneurship. Moreover, our empirical findings reveal that the relationship between culture and entrepreneurship is moderated differently by economic development. Thus, high-income countries face a three times higher rate of entrepreneurship than low-income countries. Our findings sugge...
Journal of Business Economics and Management, 2019
This research has two aims. The first one is to determine how and to what extent the national cultural characteristic of a country plays a role in her entrepreneurship success. The second one is to determine whether culture and economic development levels interact with each other on influencing entrepreneurship success. A consecutive five-year longitudinal study, covering 81 countries is conducted. Longitudinal Random Effect Regression Analysis is used to determine the effects of culture on entrepreneurship rates. Data regarding the cultural dimensions indexes of the countries is obtained from Geert Hofstede website and the entrepreneurship rates from the annual reports of the Global Entrepreneurship and Development Institute. The interaction effect of cultural dimensions and economic development levels on entrepreneurship is analyzed by treating the economic development level is the interacting variable between cultural dimensions and entrepreneurship rates. Economic development levels of the countries are measured by GDP per capita, figures obtained from the World Bank. The findings are that the cultural dimensions Individualism, Long Term Orientation, and Indulgence vs. Restraint influence the entrepreneurship rate in a supportive manner, whereas Masculinity's impact is in a rendering manner. Other dimensions seem to have no significant effect. Although relevant cultural dimensions do interact with economic development levels, their interaction effects are small. This study has several unique contributions to the entrepreneurship literature, such as its longitudinal nature, using all Hofstede Dimensions, applying a very comprehensive entrepreneurship measurement scale, its huge sample size and containing an interactive analysis of culture and economic development level which is very rare in the literature.
Entrepreneurship. How important are institutions and culturally-based prior beliefs?
2014
Although there is still no consensus on the causes of large differences in income per capita across countries, a growing literature considers culturally based beliefs and institutions as main drivers of the latter differences (Guiso et al. 2006; Tabellini 2010). The intuition is that institutions and beliefs affect the incentive to accumulate human and physical capital. Other strands of literature stress that the supply of entrepreneurship is a fundamental ingredient of economic growth and job creation. In this paper, we argue that the two views should be reconciled on the basis of the following arguments: a) occupational choices and the decision to accumulate human capital are affected by cultural and institutional factors; b) occupational choices are the main tool to allocate human capital within societies; c) entrepreneurs govern the allocation of resources in the economy, including the human resources. Confirming our hypothesis, our empirical analysis show that cultural factors matter and fatalism exerts a particularly negative effect on opportunity perception and on opportunity driven entrepreneurship. For what regards institutional variables, three interesting and somehow non conventional results emerge from the analysis. First, low start up cost are particular favorable for necessity driven entrepreneurship but not for the opportunity driven ones. Second, labor market flexibility yields a lower probability of being an entrepreneur and this results holds for both necessity and opportunity driven entrepreneurs. Third, the more burdensome the administrative requirement (permits, regulations, reporting) in entrepreneurial activity, the lower the probability of being an opportunity driven entrepreneur. On the whole, our results yield some policy relevant implications: a) culturally based beliefs matter for entrepreneurship and fatalism is more important than trust in others; b) education can affect people's fatalism; c) entrepreneurial education can be an important tool for fostering good quality entrepreneurship, i.e. opportunity driven entrepreneurship; c) institutions matter for entrepreneurship and growth but, somehow, in unconventional ways.
2021
Acknowledging the role of different forms of entrepreneurship to continued economic prosperity and the role of institutional dimensions on entrepreneurship, this paper investigates if and to what extent a selected number of institutional dimensions influence students’ intentions to either start a company or take over an existing one. Based on a Global University Entrepreneurial Spirit Students’ Survey (GUESS) dataset and international country-level databases, evidence shows that both entrepreneurship options are hampered by corruption and limited business freedom while promoted through favourable labour regulations and trade freedom. Property rights, fiscal freedom, government spending, monetary freedom, and investment freedom only affect start-ups, while financial freedom adversely affects both options. The study provides new insight into the impact of institutional dimensions on different types of entrepreneurship. Thus, in contrast to extant research in this area, it goes beyond ...
An Assessment of the Role of National Culture as a Determinant of Entrepreneurial Orientation
Journal of Economics and Sustainable Development, 2021
Entrepreneurship is an important factor of production. It is considered as a source of innovative change. Thus it catalyzes enhancement in sustainable economic development of a nation. Entrepreneurship is inseparably interlinked with flexibility and knowledge. These two factors have gained importance as a source of competitive edge in the present globalized & interconnected economy. Entrepreneurship prevents concentration of economic activities, income and wealth and promotes decentralized development of commerce, trade and industry. This in turn, leads to removal of regional and industrial imbalance. Development of entrepreneurial activities and sustainable development in entrepreneurship have gained priority in national agenda across the world. Entrepreneurship is even more crucial for developing countries as it has high employment elasticity and potential for earning foreign exchange. However, entrepreneurship is essentially a behavioural aspect. Hence culture has a causal relationship with entrepreneurship. This paper aims at assessing the role of Hofstede's dimensions of culture in developing entrepreneurship in nations by using the technique of linear multi-variate regression.
Institutional, Economic, and Socio-Economic Determinants of the Entrepreneurial Activity of Nations
Administrative Sciences
This empirical study analyses the effects of institutional, economic, and socio-economic determinants on total entrepreneurial activity in the contexts of developed and developing countries. It fills a gap in the literature, regarding the lack of empirical studies about the relationships among entrepreneurial activity, corruption, commercial freedom, economic growth, innovativeness, inward foreign direct investment, unemployment, households, and non-profit institutions serving households (NPISHs)’ final consumption expenditure, age dependency ratio, education index, and life expectancy at birth. The empirical application uses annual panel data for the 2003–2018 period, with a total sample of 21 countries, analysed in a two-stage empirical application, including preliminary analysis and a quantile regression model. New empirical evidence is provided, revealing a significantly positive role played by commercial freedom, innovativeness, inward foreign direct investment, households, and...
Small Business Economics, 2011
This paper examines how one dimension of national culture (an individualist–collectivist orientation) is related to Total Entrepreneurial Activity, depending on the level of economic development, measured by GDP per capita. Researchers have traditionally associated individualism with high rates of firm creation, arguing that an orientation towards achievement and the pursuit of personal objectives (dominant aspects in individualist cultures) are determinants of entrepreneurial activity. The current analysis shows that a country’s culture correlates to entrepreneurship, but cannot uphold the idea that higher levels of individualism mean higher rates of entrepreneurship. Using data from the Global Entrepreneurship Monitor on 52 countries, the results show that a country’s entrepreneurship rate is negatively related to individualism when development is medium or low, and positively related to individualism when the level of development is high. Thus, individualism is not related to entrepreneurship in the same way in countries with differing levels of development.
Medium term effects of culture, transactions and institutions on opportunity entrepreneurship
Journal of Innovation and Entrepreneurship, 2014
Cultural evolution is a long-term endogenous process which is revealed in society's cultural traits and it is embodied in institutional characteristics (property rights protection, rule of law, etc.) and transaction characteristics (risk levels, time required for start-ups, corruption levels, literacy levels, etc.). In the short-and medium-term, culture, institutions and transactions are exogenous for the economic and societal system. The paper aims to explore the roles of cultural, transaction and institution characteristics in the determination of opportunity entrepreneurship, at the medium-term. A series of variables is used to express these roles, which are analysed with a principal component analysis and a regression analysis. As expected, the conclusions confirm that the cultural traits both positively and negatively affect opportunity entrepreneurship depending on the particular traits combination. Moreover, the effect of enhanced transaction characteristics and economic institutions is conducive to opportunity entrepreneurship. Performing a sensitivity analysis, we construct a hypothetical, more opportunity entrepreneurship-oriented world by postulating pro-entrepreneurship cultural traits. In this 'new world', because cultural traits are no longer an issue, they present 'entrepreneurial maturity'; the important factors in promoting opportunity entrepreneurship are transaction and economic institution characteristics.
In this paper, we argue that national culture is important in interpreting the differences of entrepreneurial activities between countries. Furthermore, national wealth plays a moderating role between national culture and entrepreneurial activities. Datasets from the Global Leadership and Organizational Behavior Effectiveness (GLOBE) project and Global Entrepreneurship Monitor (GEM) study were analyzed. We find that there are interaction effects between GDP, a proxy for national wealth, and several cultural dimensions on entrepreneurial activities. More traditional cultural variables (in-group collectivism, humane orientation, and power distance) enhance early-stage and established entrepreneurship in low-and medium-GDP countries, but hinder early-stage and established entrepreneurship in high-GDP countries. More modernistic cultural variables (performance orientation, future orientation, and uncertainty avoidance) promote high-growth and high-innovation entrepreneurship in some situations, especially in high-GDP countries. Implications and limitations are discussed.